TaxTMI 
TaxTMI 
2018 (1) TMI 1285
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.... 2. The appellant submits that the Commissioner of Income-tax, Pondicherry has set aside the assessment made under section 143(3) r/w 147 of the Act by his order under section 263 and the assessing officer has completed the set aside assessment of this very same order as per the directions of the Commissioner of Income-tax. The Commissioner of Income-tax (Appeals) is therefore not correct in rejecting the various grounds of appeal on the ground that the assessment passed and in appeal was not an order under section 147 of the Act. 3. The appellant submits that the order appealed against was an order passed under section 143(3) r/w 147 r/w, 263 and therefore the learned Commissioner of Income-tax (Appeals) ought to have considered the ground raised on the validity of re-opening of the assessment itself. 4. The assessing officer erred in assessing equal amount in each of the four assessment years especially when the Commissioner of Income-tax has specifically directed the assessing officer to apportion the unexplained investment among the relevant assessment years in the same ratio of the cost of construction as declared by the assesse in his returns of inco....
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....lace any evidence to show the relevant cost of construction incurred by the assessee in respective assessment years so as to determine the unexplained investment towards cost of construction in proportion to the cost of construction incurred by the assessee in relevant to assessment years. Being so, we are not in a position to give any direction to the AO on the basis of argument of assessee's counsel. In view of lack of evidence on the cost of construction incurred by the assessee in each assessment year, this ground raised in all the assessment years stands dismissed. 6. The next ground Nos.7, 8 & 10 is with regard to levy of interest u/s.234B of the Act whether it is from the 1st day of the assessment year till the date of completion of the assessment i.e. 20.03.2013 when the regular assessment u/s.143(3) r.w.s.147 was completed on 31.12.2009. 7. The facts of the case are that the assessee filed her return of income for the Assessment Year 2003-2004 on 12.03.2008 in response to notice u/s 148 declaring total taxable income Rs. 46,000/-. The return was taken for scrutiny and notice u/s 143 (2) was sent on 10.04.2008. Subsequently, a notice under section 142(1) with question....
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....om First day of the assessment year till the date of completion of assessment i.e. on 20.03.2013 when the regular assessment u/s.143(3) r.w.s.147 was completed on 31.12.2009. The order of ld. Assessing Officer was confirmed by the Ld.CIT(A). Against this, the assessee is in appeal before us. 8. Before us, the contention of the ld.A.R is that the interest u/s.234B of the Act is required to be charged from the first day of assessment year till the completion of original assessment i.e 31.12.2009 and not the till the date of order passed u/s.143(3) r.w.s.147 of the Act r.w.s.263 of the Act i.e.20.03.2013. The ld.A.R placed reliance in the Order of Ahmedabad Tribunal in the case of ACIT Vs. Sallauddin in ITA No.2426/Ahd./2009 for assessment year 1997-98 vide order dated 05.08.2011. 9. On the other hand, ld.D.R submitted that liability to pay interest u/s.234 is mandatory and consequential in nature. 10. We have heard both the parties and perused the material on record. Sub-sections (1) and (4) of section 234B are of particular relevance to the controversy which arises in these proceedings. For aiding the discussion, it would be appropriate to extract in entirety, the statutory....
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....n of total income under sub-section (1) of section 143 or completion of a regular assessment, tax is paid by the assessee under section 140A or otherwise,- (i) interest shall be calculated in accordance with the foregoing provisions of this section up to the date on which the tax is so paid, and reduced by the interest, if any, paid under section 140A towards the interest chargeable under this section ; (ii) thereafter, interest shall be calculated at the rate aforesaid on the amount by which the tax so paid together with the advance tax paid falls short of the assessed tax. (3) Where, as a result of an order of reassessment or recomputation under section 147 or section 153A, the amount on which interest was payable under sub-section (1) is increased, the assessee shall be liable to pay simple interest at the rate of one per cent. for every month or part of a month comprised in the period commencing on the date following the date of determination of total income under sub-section (1) of section 143 and where a regular assessment is made as is referred to in subsection (1) following the date of such regular assessment and ending on the date of the reassess....
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....s (1) or (3) has been increased or reduced, as the case may be." Thereupon, the provision is that interest shall be increased or reduced accordingly. In a case where the interest is increased, the Assessing Officer has to serve on the assessee a notice of demand whereas if the interest is reduced, the excess interest has to be refunded. 12. In the present case, the issue before us arises out of the order of the A.O u/s.143(3) r.w.s.147 of the Act r.w.s.263 of the Act and the question is as to whether the amount on which interest was payable under sub-section (1) or sub-section (3) has been increased or reduced. Now, in sub-section (1) of section 234B, interest is payable on an amount equal to the assessed tax (where the assessee who is liable to pay advance tax has failed to pay such tax) or on the amount by which the advance tax paid falls short of the assessed tax. In a situation where the assessee has paid advance tax which is less than ninety per cent. of the assessed tax, interest is payable on the difference between the assessed tax and the advance tax paid. Subsection (4) of section 234B refers to a situation where "the amount on which interest was payable under sub-secti....